🔴 IBM is trading 10.5% down as strong Q1 earnings are overshadowed by cautious outlook

IBM is trading at $225.34 (-10.5%) after its strong first-quarter earnings beat was overshadowed by the company's decision to maintain, rather than raise, its full-year guidance, sparking investor concern about its growth trajectory.

• For Q1 2026, IBM reported revenue of $15.9 billion and adjusted EPS of $1.91, both exceeding Wall Street expectations. [2, 3, 5]
• Despite the strong quarter, the stock fell as the company reiterated its forecast for full-year revenue growth of more than 5%, which investors viewed as conservative. [8, 9, 15]
• The negative reaction reflects broader concerns about a cooling software sector and the potential long-term impact of AI on IBM's business. [10, 11, 12]